Currency under the bed is also a government loan

Reader comment on: Ray Dalio on Gold, Cash Under the Bed

Submitted by Lyle (United States), Sep 13, 2012 23:07

It is a zero interest loan to the government as it gets (via the fed) the value of the money when it is issued. Of course currency is a negative carry feature i.e. it costs to maintain it (at least security costs). Note sure about gold, just like silver is readjusting now that one of its larger uses is going away (film photography). If women suddenly decided that jewelery in gold was not the thing what would happen to its price? Gold has little practical use, better to buy platinum instead, it does have an increasing use.

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